Huya Shares Rise 10% Following Strong Q2 Earnings Report

GUANGZHOU – Huya Inc., a Chinese game live streaming platform, experienced a 10.5% increase in its stock during premarket trading on Tuesday following the release of its second-quarter earnings, which exceeded analysts’ expectations.

The company reported adjusted earnings per share of RMB0.47 ($0.06), surpassing the consensus estimate of RMB0.43. Revenue for the quarter was RMB1.54 billion ($212.1 million), slightly below the analysts’ forecast of RMB1.56 billion.

Although revenue declined 16.1% year-over-year, it saw a sequential increase of 2.5% from the first quarter. Huya attributed this growth to its game-related services, advertising, and other sectors, which experienced a remarkable 152.7% year-over-year surge in revenue to RMB308.5 million.

"Our strategic transformation initiatives to enhance our presence in the gaming industry through an expanded range of game-related services have continued to make progress," stated Junhong Huang, Acting Co-Chief Executive Officer.

In the second quarter, Huya’s average monthly active users on mobile platforms slightly rose to 83.5 million, up from 82.9 million the previous year. The increase was largely credited to successful e-sports events organized by the company.

Looking ahead, Huya announced a special cash dividend of $1.08 per American Depositary Share, amounting to approximately $250 million. Additionally, the company has extended its existing $100 million share repurchase program until March 2025.